If the government prints more money, how will people know about it?
2016-11-11 1:53 am
Suppose, one day government prints more notes so that twice the money as before comes in circulation. So, everything should cost twice as much now. But for that to happen, people have to lose faith in the value of their money first so that they start trading notes with half their original value. But HOW WOULD THEY KNOW that there are more notes in circulation now so that the value of each note is decreased. No one looks at the number of notes that the government currently has everyday on the internet.
回答 (3)
2016-11-11 3:55 am
The people who get the money spend it so everything has more bidders. If we say gave every citizen $1,000 a month extra the price of rent would immediately go up a few hundred because more would want to leave home or get off the streets.
2016-11-11 3:16 am
It would be all over the news. If you py no ttention to the news, yur firt clue might be empty shelves.
2016-11-11 2:02 am
You are making a weird and wrong assumption that new money is just dumped into circulation, like on the street. It is bought. The real cause of what you are concerned about is the national debt, the government spending money that it does not have.
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